Federal Reserve's Rate Decisions

The Federal Reserve has surprised investors by indicating fewer rate cuts in the upcoming year, suggesting only two cuts in 2025 instead of the previously expected four. The Fed’s recent meeting showed a consensus leaning towards a hold on rates due to recent inflation trends, which have remained sticky despite earlier cuts. Notable discussions included the upper end of the neutral rate and how it influences economic stimulation. This cautious stance has raised questions about the impact on markets, particularly as the Fed adjusts its inflation forecast in response to uncertainties in the economic landscape.